We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more
Real Time News
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/KdpSjQSJ8F
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/INdFtsrTTF
  • What is the top market moving theme for the coming week? I disagree with the majority. '$EURUSD, $GBPUSD and $AUDUSD Top Volatility Candidates With #Fed, #Election, #TradeWar' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/07/EURUSD-GBPUSD-and-AUDUSD-Top-Volatility-Candidates-On-Fed-Election-Trade-War.html?CHID=9&QPID=917719 https://t.co/Q1dbZVN5Us
  • The Australian Dollar was focused on its home country in the past week, but that is likely to change sharply in the days ahead with major global risk events coming up. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/yZz3hCyVMx https://t.co/1xw1JHwd7l
  • The #Euro broke chart resistance, threatening to challenge the bounds of its longer -term downtrend against the $USD. Bulls may find it premature to celebrate however. Get your market update from @IlyaSpivak here: https://t.co/VfR13llYbW https://t.co/LiWTvIygxc
  • The $USD appears to be stalling against the Singapore Dollar, Malaysian Ringgit, Indonesian Rupiah and Philippine Peso, but technical analysis may still favor USD strength. Get your market update from @ddubrovskyFX here:https://t.co/AZp98MoXKo https://t.co/jgZMUFVGJB
  • The Indian Rupee soared after the Reserve Bank of India surprised with a rate hold. $USDINR may climb as support reinstates the uptrend ahead of Indian CPI and global trade tensions. Get your market update from @ddubrovskyFX here:https://t.co/QEOabsDfMn https://t.co/rqn8Zjrvkv
  • #Gold closed lower after paring early-week gains post-NFP on Friday. But will price finally break support? These are levels that matter on the $XAUUSD weekly chart. Get your $gld technical analysis from @MBForex here: https://t.co/RILBGhLAQZ https://t.co/q5znMUlEQA
  • German Bund Yields Update: 2-Year: -0.639% 3-Year: -0.651% 5-Year: -0.548% 7-Year: -0.480% 10-Year: -0.290% 30-Year: 0.228%
  • The $AUD erased half of November’s down move in a mere two days but the dominant trend bias continues to favor weakness ahead. Get your market update from @IlyaSpivak here:https://t.co/ShYksfNXyS https://t.co/OVhyNgLRn5
US Dollar Weathers a Rebound in Risk Appetite, But for How Long?

US Dollar Weathers a Rebound in Risk Appetite, But for How Long?

2010-03-06 01:04:00
John Kicklighter, Chief Currency Strategist

Through 2009, the US dollar was under constant selling pressure first as investors were diversifying away from Treasuries post-crisis and into economies with better hope for return. As the advance matured, though, the effort to invest in higher yielding assets was increasingly funded by US loans. With market rates in the world’s largest economy at record low levels, there was a growing belief that the dollar was an ideal funding currency in the given market environment. Yet, where the currency perhaps fulfilled such a role through the short-term, an assessment with a more distant perspective suggested the greenback would not maintain a funding status for very long. Given the probability that rates would begin rising sometime in the second half of the year and the appeal of US assets in the international market; the dollar would not offer a stable yield differential and posed a capital appreciation risk. However, it wasn’t until recently that these conditions would start to factor in. This past week, a benchmark event occurred when the US three-month Libor rate crossed above its Japanese equivalent. While this was not the benchmark to immediately propel the single currency to the same carry status as say the Australian dollar, it cease any speculation that the greenback was a better source of funds than the Japanese yen. This is one of the primary reasons why the dollar has remained somewhat stationary over the past month while equities have started to appreciate and the Japanese yen tumbled.

Does this shift mean that the greenback has fully relieved itself of its correlation to risk appetite? No. A strong enough rally in investor optimism would likely spur the dollar to losses as there are still bigger factors (like the long-term effort to diversify away from a dependence on the single currency). More importantly, a tumble capital markets (a rise in risk aversion) would still play to the benchmark’s appeal as a safe haven. Yet, absent clear and all encompassing trends in risk appetite, the dollar could attempt to further define its own future. In the meantime, it will be important to monitor the larger risks to stability. Should the Greek situation suddenly deteriorate or Spain, Portugal or Italy fall find themselves in similar positions; the underlying catalyst could once again take over.

As for scheduled event risk, the economic docket does not carry many major market-movers (though it bears mention that even the most prominent economic release – NFPs – wasn’t able to rouse price action this past week). Retail sales and consumer sentiment will offer a meaningful overview of health for the economy’s largest sector. The trade report will be mixed view as it offers a feeling of American’s spending habits and one of the consistent deficits. The other deficit (fiscal) will also be in the news with the budget statement.  - JK

How far do you think the dollar will rally? Discuss the dollar’s future in the DailyFX Forum.
For more timely FX market analysis, take advantage of the DailyFX Real Time News service.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.